ADA Is Down 70% in 2025 —But 2 New Sources of Demand Are Emerging For Cardano
Despite a 70% drop in 2025, Cardano (ADA) may see recovery due to rising demand from the Midnight (NIGHT) token and its inclusion in Crypto Index ETPs.Summary
Cardano (ADA) has experienced a significant 70% price drop in 2025, frustrating many holders. However, two emerging sources of demand suggest potential for recovery. The first is the rising trading volume for Midnight (NIGHT), a privacy-focused blockchain developed by IOG, on Cardano-based decentralized exchanges (DEXs). Increased NIGHT trading requires ADA for fees and swaps, creating on-chain activity, with buy orders significantly outweighing sell orders for NIGHT using ADA.
The second factor is ADA's strong positioning in Crypto Index Exchange-Traded Products (ETPs). Analyst James Seyffart noted that ADA was the only asset included in all six ETP products he reviewed, suggesting financial institutions view it as stable with long-term potential. This institutional confidence encourages capital inflows.
Furthermore, on-chain data shows that Cardano's Total Value Locked (TVL) in ADA remains stable around 500 million, and daily active addresses are consistent, indicating that holders are maintaining their positions despite the price decline, reflecting long-term confidence.
(Source：BeInCrypto)